From the BBC via Mish's Global Economic Trend Analysis.
The SubPrime crisis has really had my head spinning as I reflect on my two homebuying experiences first, in 1999, and second, in 2005. My last time out the lender/broker came across like a coke addict. He wanted me to borrow %125 of the cost of the home so I could "have some cash on hand." We knew each other socially but I knew better than that.
I'm sure every one remembers the phone calls from the home equity types urging you to "get that cash out of that house." Truly, the rise in home walues was an dispersed economic windfall the like of which we have never seen before. The rapacious mortgage industry with the endorsement of the Fed sought to get all that money back as soon as possible.